I have a return-client who bought a little granny-house as an investment, and she’s entrusting me to give it an “update.” She’s not sure if she’ll sell it or rent it, but she’s hoping its value will increase with the renovation, and then she’ll decide what to do. I’ve worked with her on a number of projects, and she’s very hands-off. But that almost puts more pressure on me to figure out the perfect amount of money to put into this property.
It’s a topic that comes up frequently when discussing a renovation. This money that I’m putting in, will I get it back when I sell? Sometimes it doesn’t matter—you want something custom that is suited to your unique needs, and you think you will never sell anyway. But in general, I don’t think it’s a bad way to look at a project,
because life is filled with surprises. And your home is an investment.
My client’s granny house? Happily, it’s in a great location; close to the water and also close to town. It even has a little water view from the upstairs window. It’s in the village, so lots of nice family-homes surround it, but it’s not in an estate neighborhood which would really skew its value upward. And also, she was lucky to get it in this market, but it’s not like she got it for a steal.
I was glad I was asked to attend the open house before she made her offer. I’ve bought and sold a fair number of houses, so I guess I have developed a methodology. I go to the open house and do what lots of other house-savvy people do. I look at the windows and the roof and the beams and the electric panel and get a general sense of what the plumbing looks like. But the other thing I do is to quietly linger. Yes, sort of like a stalker, but what I’m really doing is listening.
I like to hear what that couple over there likes and doesn’t like about it. And what does that contractor have on his mind? Is that tall father ducking his head when he comes down the stairs? Is it the funky bedrooms that really turn people off? Did someone else notice that rotted beam in the basement? Because, for my client, the issues that
other potential buyers bump into? Those are the issues that I need to fix to protect her investment.
Where did I start? Unfortunately, in the most boring (and potentially most expensive) place in the house—the basement. Oh, the unfinished basement! Seemingly a simple enough place. Maybe you store some stuff in it, maybe there’s a workshop, how bad can it be? But it is the literal foundation of your home, and any issues you find, really need to be addressed.
In my case, there were two rotted beams, water damage in the basement laundry room, and a host of other updating that needed to be done. Beware the empty oil tanks, old heating systems, and antiquated electric panels. It’s all lurking down there. And it’s the most boring money you will ever spend. Lucky for me, the roof checked out ok.
So here I am. I’ve just spent a significant part of my budget and the house still looks like one of the three little pigs built it. What to take on next? Well, kitchens and bathrooms are always low-hanging fruit when it comes to money that you put in that you may get also get back. So, I’ve got those rooms planned out. But they are
modest, clean, functional designs. Sure, I’ve added a few fancy details that were easy to incorporate because we are re-framing anyway. But I’m not breaking the bank in there. The house has humble bones.
I also took down a few spans of wall in the living room which makes the whole place feel bigger. And I eliminated some 1970’s paneling and the popcorn ceilings. I’ll paint and replace light fixtures and refinish the floors. But, again, that’s all expected in most renovations.
The most controversial place where I wanted to spend was on the upstairs. The upstairs has only two bedrooms, and they’ve got slanted walls and wonky closets. The ceilings are low, and at the open house I watched as the tall men ducked going under the doorjambs and then ducked again when they were going down the stairs. Also, it only has an odd little half bath up there, no tub or shower. The whole second floor; it’s just not all that livable. I could see that the open house people thought the downstairs had potential, but then they’d go upstairs and kind of shake their heads as they left.
So, my solution was to suggest an addition. Which seems kind of radical when you’re renovating a home on a budget. But there is a nice sunroom downstairs, and building out a dormer over it creates enough room for a third (modest) bedroom and also a full bath. Plus, it eliminates a bunch of the slanted walls and the weird half bath. It’s not going to be a giant, glamorous space. But that new bedroom
will have normal ceilings and double closets. It will be downright livable. And once that’s in the picture, we can look at those other two bedrooms as a kid’s room, or an office, or a guest room. I will have to fix the short door jamb issue, but the other quirkiness just adds to the charm.
It all ends up being more money than we thought of course, but most renovations are. And I do think I’ve solved some pivotal problems that will ultimately protect her investment. Plus, it won’t be a three little pig house anymore. She’ll have a solid three
bedroom in a nice neighborhood. But ultimately, who knows? I mean, real estate is a fickle beast.
I think with renovations like these, all you can do is keep your eye on the prize. If your goal is to eventually get out what you put in, you have to find your house’s sweet spot. They all have them. And as long as you let that be your beacon, you can’t go too far astray.
Jennifer Coles is a local interior designer. colescoloranddesign.com instagram: coles_color_and_design
